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Central Indiana Intermodal Service. Growth and Network Expansion Opportunities for BNSF February 12, 2008. Indiana’s Intermodal Team. Here to make the case for run-through service to CSX Avon State: IEDC Ports of Indiana INDOT Regional Indy Partnership Conexus Indiana. Industry:

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Central indiana intermodal service

Central Indiana Intermodal Service

Growth and Network Expansion Opportunities for BNSF

February 12, 2008


Indiana s intermodal team
Indiana’s Intermodal Team

Here to make the case for

run-through service to CSX Avon

State:

  • IEDC

  • Ports of Indiana

  • INDOT

    Regional

  • Indy Partnership

  • Conexus Indiana

  • Industry:

  • Browning Investments

  • Duke Realty Corporation

  • TJX Corporation

4


Goal enhance access to global markets
Goal: Enhance Accessto Global Markets

Indiana recognizes:

  • Intermodal connections are keyto global competitiveness

  • Intermodal logistics parks arethe trade hubs of the future

  • West Coast connection critical to Indiana

  • BNSF is the premier intermodal carrier and the preferred service provider

5


Value proposition for bnsf opportunity for growth
Value Proposition for BNSFOpportunity for growth

Run-through service from LA/LB ports

to CSX Avon Yard benefits BNSF:

  • Significant growth of headhaul & backhaul volume

  • Minimal CAPEX and operating risk

  • “Plug and play” logistics park located in a premier distribution location

  • Complements existing network & Chicago ramps

    Avon provides strategic advantage for BNSF

6


Proposed service solution
Proposed Service Solution

Run-through service to Avon from LA

  • Connect to CSX in St. Louis

  • Possible mix with domestic (Clovis)

  • 5-day a week frequency in both directions

    Key Assumptions:

  • Economics work for carriers & shippers

  • CSX agrees to trackage & terminal deals

  • Operational issues are manageable

7


Growth drivers for bnsf
Growth Drivers for BNSF

Central Indiana: Best location to serve greatest number of consumers, producers & exporters

  • Median center of U.S. population

  • Same-day delivery to over 50% of U.S. population

  • Heart of manufacturing, agriculture, hardwood production

  • 15% of U.S. freight by value touches Indiana

    • 12% by tonnage

  • Indiana ranks 2nd in pass-thru tonnage, 5th overall

  • Least congested infrastructure

    • 5.3% peak congestion vs. 15.3% national average

    • “Major Moves” fully funds 10-year transportation plan

8


Indiana the optimal distribution location
Indiana: The OptimalDistribution Location

Median Center of U.S. Population




Indiana export manufacturing powerhouse
Indiana: Export &Manufacturing Powerhouse

  • Exports totaled $22.6 billion in 2006

  • 1st in automotive manufacturing growth

  • 3rd in car/truck production by 2011

  • 1st in manufacturing output per capita

  • 1st in value-added manufacturing

  • Honda building newest assembly plant in Greensburg, IN.

  • Only state with 2 Toyota production sites


Indiana s manufacturing logistics economy
Indiana’s Manufacturing & Logistics Economy

Source: PCRD using CEW data provided by the Indiana Business Research Center (IBRC)


Indiana epicenter of u s manufacturing
Indiana: Epicenterof U.S. Manufacturing

14


Indiana automotive center of north america
Indiana: Automotive Centerof North America

  • Car/truck assembly plants within650 milesof Indianapolis

  • 84% ofNorth Americanauto production




Recent large business investments in indiana
Recent Large BusinessInvestments in Indiana


Intermodal freight flow study
Intermodal FreightFlow Study

Browning-Duke commissioned studyto estimate baseline internationalintermodal flows to Central Indiana

  • Conservative methodology combined best available data sources (Customs/US Census,Reebie Transearch)

    Findings:

  • 80% of Central Indiana’s containerized imports move through West Coast ports (predominantly LA/LB)

  • 150K-200K annual inbound (drayage) loads

    • Estimated value $5.5 billion

      • Likely a low figure based on pro-rata share of U.S. imports

    • Tremendous backhaul growth opportunities

    • 300K-400K annual two-way lift potential

    • Volume easily supports 5-day/week service

19


Csx avon yard
CSX Avon Yard

Located in heart of state’s largest

distribution submarket

  • IM ramp can handle 100K annual lifts today

    • Current volume is approx. 30K lifts

  • Expansion to 300K lifts with modest CAPEX

  • Adjacent to AllPoints Midwest 930-acre (expandable)world class logistics park

    • 12 million sq. ft of DC/light industrial space

  • Hendricks County has absorbed DC space faster than Alliance; 25M feet in 15 years

20


CSX Yard

AllPoints Midwest

Hendricks County, IN

World-Class Trade Infrastructure


Indiana proposal
Indiana Proposal

  • “Take or Pay Train” arrangement

    - Minimize risk to BNSF

  • Conexus Indiana will organize Shippers Alliance & market service

  • Improvements to CSX Avon facility

    - Developers, local governments alreadyjointly planning improvements with CSX

  • State/Ports of Indiana support

    - Potential Incentives, Financing, Foreign-Trade Zone

22


Going forward
Going Forward

  • BNSF reaction

  • Commitment to evaluate concept

  • Plans for future dialogue

  • How do we move forward?

    Proposed Next Step:

  • BNSF invited to Indiana for meetingswith key leaders and tour of region


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